ABSTRACT
The study investigated Corporate Visioning as a strategy for organizational transformation in the Nigerian textile industry. The study therefore had the following objectives among others: (i) to determine the relationship between corporate visioning and employee motivation, (ii) to evaluate the extent of implementation of corporate visioning between the distressed and the non-distressed textile firms in the Nigerian Textile Industry, (iii) to determine the relationship between corporate visioning and organizational transformation, and (iv) to identify the impact of visionary leadership on organizational transformation. The study adopted the survey design. Three hundred and sixty-six randomly selected personnel of managerial cadre, senior staff and junior staff from a population of 7,787 participated in the study. The personnel were made up of 3,022 from the distress operating textile firms and 4,765 from the non-distressed operating textile firms. Seven instruments (Corporate Visioning Inventory, Employees Motivation Inventory, Implementation of Corporate Visioning Scale, Innovation Inventory, Organizational Transformation Inventory, Corporate Visioning Impact Scale and Visionary Leadership Scale) were used for data collection. Frequency, percentage, means, standard deviation, Person’s Product Moment Correlation, t-test and regression analysis were used for data analysis. Based on the results of the study, significant positive relationship exists between Corporate Visioning and employee motivation. The study also found that there is no difference in the level of implementation of Corporate Visioning in both the distressed and non-distressed textile firms. The study further found that visionary leadership significantly impacts on the organizational transformation. The study concluded on the note that the awareness of Corporate Visioning was very high in the industry, yet the implementation was very low. It also concluded that the application of corporate visioning in the firms within the industry is relative low and as such real transformation has not taken place in the industry. It was recommended among others that in order to enable the industry to have a pool of trained workers, academic institutions should actively come forward (along with industry) and design courses to suit the industry’s needs. In view of the growing globalization of the world economy, government continued ban on imported fabrics had never worked and will never work. The way out is for the industry to be totally transformed-starting from the design, production process and eventually to marketing process. All these can be achieved through corporate visioning. This will help the industry to grow and face the challenges which are bound to be in the free market. As contributions to knowledge, our model systematizes the literature, offering more direction to those seeking practical ways of thinking about vision creation and implementation, Secondly, by providing this structure to the literature, we hope it will help shape future research in this domain, clarifying potential links, and providing a roadmap to understanding the existing literature along the way.
Keywords: Corporate vision, strategy, innovation, transformation, visionary leadership.
TABLE OF CONTENTS
PAGES
Title page ………………………………………………………………… ii
Approval page …………………………………………………………… iii
Certification page ……………………………………………………….. iv
Acknowledgements……………………………………………………… v
Abstract ………………………………………………………………… vii
Table of contents ……………………………………………………….. viii
CHAPTER ONE
INTRODUCTION
1.1 Background of the study ………………………………………………….. 1
1.2 Statement of the Problem………………………………………………… 8
1.3 The Objectives of the Study……………………………………………… 9
1.4 Research Questions………………………………………………………. 10
1.5 Research Hypotheses……………………………………………………… 11
1.6 Significance of the Study…………………………………………………. 12
1.7 The Scope of the Study……………………………………………………. 13
1.8 Limitations of the Study…………………………………………………… 14
1.9 Operational Definitions of Terms……………………. 15
References………………………………………………………………… 17
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Frame Work of Corporate Visioning…………….. 21
2.2 The Relationship between Corporate Visioning and Employee
Motivation………………………………………………………………………. 27
2.3 Implementation of Corporate Visioning………………………. 31
2.4 The Relationship between Corporate Visioning and Innovation
in Nigeria Textile Industry………………………………………………….. 35
2.5 The Relationship between Corporate Visioning and
Organizational Transformation……………………………… 40
2.6 The Impact of Corporate Visioning on Customer Satisfaction…… 45
2.7 The Impact of Visioning Leadership on Organizational
Transformation……………………………………………………………… 48
2.8 Summary of Review of Related Literature………………. 57 References…………………………………………………………………… 63
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design…………………………………………………………….. 81
3.2 Sources of Data………………………………………………… 81
3.2.1 Primary Sources of Data…………………………………………. 81
3.2.2 Secondary Sources of Data……………………………………. 81
3.3 Population of the Study……………………………………………………… 82
3.4 Sample Size Determination………………………………………. 84
3.5 Sampling Techniques……………………………………………….. 85
3.6 Research Instrument…………………………………………………………. 87
3.6.1 Validity of the Instrument………………………………………… 88
3.6.2 Reliability of the Instrument……………………………………. 89
3.7 Procedure for Data Analysis …………………………………….. 91
References……………………………………………………………………. 93
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 Data Presentation Based on Questionnaire Scores……………. 94
4.2 Hypothesis Testing………………………………………………………….. 100
4.3 Discussion of Results……………………………………………… 112
4.3.1 Hypothesis I………………………………………………………………… 113
4.3.2 Hypothesis II…………………………………………………………… 114
4.3.3 Hypothesis III……………………………………………………………….. 116
4.3.4 Hypothesis IV………………………………………………………………. 117
4.3.5 Hypothesis V………………………………………………………………… 119
4.3.6 Hypothesis VI……………………………………………………………….. 120
References…………………………………………………………………… 123
CHAPTER FIVE
SUMMARY OF MAJOR FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Major Findings………………………………… 129
5.2 Conclusion……………………………………………………………… 130
5.3 Recommendations………………………………………………….. 131
5.4 Contributions to Knowledge…………………………………………. 133
5.4.1 Model Description………………………………………………………… 134
5.4.2 Summary of the CVPM for the Nigerian Textile Industry…… 135
5.5 Suggestions for Further Research………………………….. 137 Bibliography………………………………………………………………. 139
Appendix I Questionnaire ……………………………………………… 159
Appendix ii Total Nigerian Textile Firms in Existence as at 2008 166
Appendix iii Closed Textile Factories from 2003 to 2008 168
Appendix iv Krejcie Morgan Sample Size 172
Appendix v Selection of a Proportional Sample of the Respondents 173
Appendix vi Reliability for C.V.I. 174
Appendix vii Reliability for E.M.I. 175
Appendix viii Reliability for I.C.V.S. 176
Appendix ix Reliability for I.I. 177
Appendix x Reliability for O.T.I. 178
Appendix xi Reliability for C.S.S. 179
Appendix xii Reliability for V.L.S. 180
Appendix xiii Demographic Characteristics of the respondents 181
Appendix xiv Corporate Vision Inventory Scores 186
Appendix xv Employees Motivation Inventory Scores 188
Appendix xvi Implementation of Corporate Visioning Scale Scores 189
Appendix xvii Innovation Inventory Scores 190
Appendix xviii Organizational Transformation Inventory Scores 192
Appendix xix Customer Satisfactory Scale Scores 194
Appendix xx Visionary Leadership Scale Scores 196
List of Tables
Tables
2.1 Commonly Shared Vision Attributes …………………… 24
3.1 Stratified Randomly Selected Distressed and Non-Distressed Operating Textile Firms and Population of Personnel in 2008. … 83
3.2 Selection of a Proportionate Sample from a Population of 7787
Personnel in 12 Textile Firms in the North and South Zones………………. 86
3.3 Selection of a proportional sample from a Population of 7787 ………….. 87
4.1 C.V.I. scores on 5 items of Corporate Visioning in the textile industry…… 94
4.2 E.M.I. Scores on 5 Items of Employees Motivation in the Textile Industry… 95
4.3 I.C.V.S. Scores on 5 Items of Implementation of Corporate Visioning in the Textile Industry…………………………………………………………. 96
4.4 I.I. Scores on 5 items of Innovation in the Textile Industry…………………. 97
4.5 O.T.I. Scores on 5 Items of Organizational Transformation in the
Textile Industry………………………………………………………………… 98
4.6 C.S.S. scores on 5 Items of Customer Satisfaction in the Textile
Industry…………………………………………………………………………. 99
4.7 Scores on 5 Items of Visionary Leadership in the Textile Industry. …………. 100
4.8 Summary of the Pearson Product Movement Correlation Statistic on
C.V.I. and E.M.I. Scores…………………………………………………….. 101
4.9 t-test Summary on Distressed and Non-Distressed Textile Firms in
Level of Corporate Visioning Implementation………. 103
4.10: Summary of the Pearson Product Moment Correlation Statistic on
C.V.I. and I.I. Scores…………………………………………………… 104
4.11: Summary of the Pearson Product Moment Correlation Statistic on C.V.I. and O.T.I. Scores………………………………………………………….. 106
4.12: Summary of the Pearson Product Moment Correlation Statistic on
C.V.I. and C.S.S. Scores…………………………………………………….. 108
4.13: Summary of the Pearson Product Moment Correlation Statistic on
V.L.I. and O.T.I. Scores……………………………………………………… 109
List of Figures
Fig 1 Functional relationship between corporate visioning and employee
Motivation in the textile industry…………………………………………….. 102
Fig 2 Functional relationship between corporate visioning and innovation
in the Nigeria textile industry ………………………………………………….. 105
Fig. 3 Functional relationship between corporate visioning and organizational
Transformation in the Nigeria Textile Industry……………………. 107
Fig. 4 Impact of Corporate visioning on the customers’ satisfaction in the Nigeria Textile Industry………………………………………………………………… 109
Fig. 5 Impact of Visionary Leadership on the organizational transformation In the Nigerian Textile Industry………………………. 111
Fig. 6 Corporate Visioning Process Model (CVPM) for the Nigerian Textile
Industry………………………………………………………………………… 133
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Vision was mostly a concept of researchers who studied political leadership and the leadership of social or religious movements before the 1980s (Kantabutra, 2008a:128). It was rarely considered within the leadership and corporate literature. Only in the past couple of decades has vision been extensively discussed in the corporate sector. In this context, the use of vision has been widely exhorted as one of the main characteristics of effective leaders and organization (Bryman, 1992:31-45; Humphreys, 2004:96: Conger&Kanungo, 1987:637-647). Some theorists believe that vision reflects the company’s image of some future state, which will be the ideal achievement of the organization. Organization sets this as its vision for example, to be a world -class manufacturing organization, a pace setter in the industry or a business leader. Having a vision means having knowledge of where to go and a greater control over the future. If an organization does not control its destiny, other outside forces will decide that for it (Mohtsham, 2004:247-249). Not only is vision an idea or image of a desirable future, but the right vision can also actually jump-start the future of the organization by mobilizing people into action toward achieving it (Nanus, 1992:44).
Effective vision provides a word picture of what the organization wants to become eventually which may be five, ten or fifteen years in the future. This statement is not only an abstract but it contains a concrete image of the desired state and provides also foundations for future strategies and objectives. All organizations face problems in their lives but a well thought out vision together with effective operations, gets the organization out of these troubles (Tregoe, Zimmerman, Smith, Tobia, 1989:249). Thus vision is like the headlights of a vehicle on a road at night which shows the way to the destination on a dark path avoiding any accidents and carefully leaving behind the other cars on the road.
Satisfying three essential conditions are the prerequisites for Corporate Visioning to serve its function, of setting an organizational development agenda and laying the foundations for more detailed strategy work. First, it must be comprehensive, touching all aspects of the business. An incomplete vision is likely to result in problems going on recognized or unchallenged. Second, it must be inclusive, reaching both inside and outside the organization, engaging the agendas of all key stakeholders. A vision invariably is a call for action, and all those involved in creating a better future need to know what is expected of them. Third, a vision must establish a dynamic, a trajectory for change. This in effect requires two visions: a static vision of the enterprise (where it is now and will remain if nothing is done), and a dynamic vision that captures what the enterprise might become if the right moves are made (Finkelsein et al., 2008:505-538).
Overall, research has demonstrated significant contributions of visions to organizational effectiveness (Zaccaro, 2001:367-380). Lack of vision also appears to be associated with failed attempts to manage organizational change (Collis and Porras, 1994:87; Lucey, Bateman and Hines, 2005:9-13) and attention to vision was found to be a key strategy employed by 90 leaders who enlisted others in a common vision (Bennis and Nanus, 1985:44). Visions offer a value based direction for the organization and provide a rationale for strategic decision-making. While most of the previous research into vision was conducted at the individual level, as opposed to the level of the business-unit or organizational-level, vision has been studied as a blend of charismatic leadership in a wide variety of samples and industries, with generally positive finding between this kind of leadership and followers’ performance, attitudes and perceptions.
Thus, the concept of corporate visioning according to Bennis and Nanus (1985:102-105) “is a mental image of a possible and desirable future state of the organization … (which) articulates a view of a realistic, credible, attractive future for the organization, a condition that is better in some important ways than what now exists.” Corporate visioning has direct bearing with the situation been experienced by the Nigerian Textile Industry. For instance, Lipton (1996:83-91) asserts that “a clearly articulated vision, fully implemented across an organization, infact makes a profoundly positive difference.” Similarly, Gladwell (2000:2) in supporting this position, notes that guided by visionary leadership, transformation can gather momentum until it reaches a “tipping point” where it will spread like epidemic throughout the many intertwined systems and dramatically alter how organizations and systems operate. Furthermore, Roberts (1983:5-16) states that all successful transformations are vision led. However, transformation is defined as “the radical shift from one state of being to another, where the new state is uncertain until it emerges and is better able to meet the more sophisticated demand of the environment than the old ‘tried and true’ state” (Ackerman Anderson and Marquardt, 1997:16). Hence the Nigerian textile industry is facing a tremendous environmental demand.
As a matter of fact, the issue of Corporate Visioning in the Nigerian textile industry has raised great concern in the face of myriad of problems within the industry. The industry is faced with very low sales as Oshiomhole (2002:2) rightly observes that there are more smuggled textile materials in the Nigerian markets across the country like Lagos, Kano, Aba and Abuja than the locally made ones. Further to importation of textiles in mass quantities at prices cheaper than local production, many units went into bankruptcy followed by retrenchment of labour force in large numbers.
Olanrewaju (2002:2) by implication does not believe that the industry paid attention to corporate visioning by asserting that investors in the textile industry failed to re-tool and re-equip their operations, failed to stream-lined their cost of production, cannot compete price wise, with imported / smuggled fabrics. Further the public perception is that “the quality of their fabrics is lower than the foreign made ones, operate in a seller market, hence they do not market and improve on their products”. Olari (2007:2) lends support in observing that increased global competition as a result of Nigeria’s signing the World Trade Organization (WTO) agreement in 1995, the incidences of globalization have all created poor market situations and eroding employment capabilities and further reducing the capacity utilization. The consequence of this is well known and this calls for immediate attention. Without the industry coming into terms with corporate visioning, as a strategy for organizational transformation the livelihood of over one point seven million (1,750,000) cotton growers (Walid, 2008:2), retrenched workers and their dependants, all thrown into the already saturated labour markets. The attendant incidences are already visible; armed robbery has been on increase; motor cycle riders popularly called ‘okada’ are all over the place. According to Road Safety Report, about 85% of road accidents in Kaduna are caused by okada riders. The death-toll among the retrenched workers and their dependants are also in the increase according to National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) report (2008:9).
All over the globe it seems that the textile industry is facing one problem or the other. In Uganda, Jobanputra (2008:2) having identified the problems confronting the textile industry, asserts that in this era of stiff competition, no company can survive without corporate vision. Consequently, the company’s vision has been to contribute to Uganda’s economic transformation through value addition to cotton. The All-Pakistan Textile Mills Association (APTMA) (2008:1) states that due to challenges facing the textile industry, a huge transformation process needs to be initiated at all levels of the industry. Ebrahim (2008:1) is of the view that “with the globalization process, severe crises has begun to take place and one of the main causes is emergence of new low-cost textile producers who are benefiting with their country’s low-cost structure and opening of global markets. This however, calls for the introduction of latest technology in the industry so as to reposition their firms to gain competitive advantage. The fiber/textile /apparel (FTA) industry is one of American’s largest manufacturing industries and its success is critical to the economic well-being of the country. However, though it was once the world’s unchallenged leader, the industry has faltered in recent years, and it is in danger of slipping further (Moncarz, 1993:13). Thereby, advocating for information technology vision for the United States Fiber/Textile/apparel industry. Similarity, the European Apparel and Textile organization proposed a vision for 2020. This vision is built around the concept of dynamic, innovative, multi disciplinary knowledge – based, flexibly integrated and customer oriented networks of businesses. This will enable them move from today’s situation toward this long term vision in a strategically coordinated way.
Previous empirical studies have shown how corporate vision has impacted on organizational performance using customers (Howell and Frost, 1989:245-269; Kirkpatrick, 1992:36-51; Puffer, 1990:177-192), corporate leaders (Baum et al. 1998:43-54; Kantabutra, 2003:122-134), and organizations’ employees (Bennis &Nanus, 1985:49). In addition, no published studies have reported negative or non significant relationship between corporate vision and organizational performance, possibly because negative or non significant findings are rarely published.
Research on vision itself has generally focused on four aspects: development, articulation, communication and implementation (Nanus, 1992:36; Quigley, 1993:129-134; Robbins and Duncan, 1988:137-162). Little is known of what constitutes an effective vision. Baum et al (1998:43-54) were among the first who found positive relationships between vision attributes of brevity, challenge, future orientation, aspiring, abstractness, clarity, stability and vision content, and organizational performance in entrepreneurial firms. The researchers surveyed CEOs of architectural woodwork firms, and found that vision attributes and vision content were directly related to venture growth, as measured by sales, profits, employment and net worth in these entrepreneurial firms. These vision attributes have also found to indirectly relate to customer satisfaction and directly relate to staff satisfaction in Australian apparel or textile retail stores (Kantabutra, 2003:59-72).
As of 1980, Nigeria was ranked the third largest Textile Industry in Africa after Egypt and South Africa (Uduak, 2009:3). But between 1997 and 2004, the textile industry continued to lose ground and as such has suffered significant stagnation in the past few years. Within the difficult macro-economic context of Nigeria, firms reported numerous issues related to their business operating environment such as a severe drop in domestic demand, higher production costs due to energy, exchange rates and raw material acquisition, political uncertainty, tax regimes, infrastructure weaknesses, the steep cost of working capital and corruption (Scheller et al., 2002:22). Nevertheless, there seems to be a strong connection between corporate visioning and the situation being experienced now in the industry (Charkaborty, 2008:1).
In spite of all the enumerated myriads of problems confronting the industry, there is need for the industry to look beyond the present situation if the nation will harvest the gains of the industry. The study therefore, is being conducted to assess corporate visioning as a strategy for organizational transformation in the Nigerian Textile Industry.
1.2 Statement of the Research Problem
